Canada doesn’t get the respect it deserves for the many wonderful growth and compounder stocks that it produces. Canada might not be the tech giant that its neighbour to the south is. However, it has produced some excellent stocks to hold for the long term.
The recent market pullback has created opportunities to add great growth businesses at great prices for the long term. If you are wondering what stocks to buy and hold through 2030, here are four stocks to consider.
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A space technology company
MDA Space (TSX: MDA) has just started to hit its stride after a couple of years of turning its business around. Last year, this stock soared over 150%. Its stock is down 7% year to date.
MDA is a world-leading supplier of components for the space industry. With space becoming an expanding part of global data and communication networks, MDA has seen its backlog rapidly increase. Its current backlog could support several years of double-digit growth ahead alone.
MDA just announced the acquisition of a specialized semi-conductor developer for the space industry. While it paid a premium, it further diversified and enhanced its growth profile. If you believe space will continue to see strong industry growth tailwinds, this is a good stock to add for the long term.
A European growth stock
Topicus.com (TSXV: TOI) is another perfect growth stock to own now and for many years to come. Like its parent company, Constellation Software, it is employing a software consolidation strategy. However, it is different from Constellation in that its focus is primarily in Europe.
If you are worried about the economic impact of Trump’s tariff wars in North America, Europe might be a safer space to invest. Topicus.com is particularly well hedged there.
It operates niche software businesses across Europe. These tend to be mission-critical solutions that are costly to replicate and costly to move away from. Topicus.com’s companies generate a lot of excess cash. It tends to redeploy that cash into more software acquisitions.
Overall, this formula has a powerful compounding effect. If it can keep reproducing this process, shareholders should do very well in the long term.
A healthcare software stock
Another stock with long-term potential is small-cap growth stock VitalHub (TSX: VHI). This software company is focused on the healthcare industry. It has been executing very well. Last year, revenue grew 31% and adjusted earnings before interest, tax, and depreciation (EBITDA) by 34%.
This company has a great platform of services that help save medical institutions time, money, and effort. It also helps lead to better patient outcomes and results.
This growth stock has a strong balance sheet and ample cash to acquire more specialized software companies into its fold. With healthcare systems understaffed, underfunded, and over-utilized, demand for VitalHub’s services should only grow in the coming years.
An insurance stock for growth
Trisura Group (TSX: TSU) is a stock with underappreciated growth momentum. Trisura offers specialty insurance and fronting solutions in Canada and the U.S.
Over the longer term, it has performed very well. Its stock is up 278% in the past five years. The company had some growing pains over the past few years. It has been investing and strengthening its insurance platform in the United States. Fortunately, those investments are largely complete. Today, Trisura is ready to continue its growth strategy.
It earns strong returns on equity and has a low operating ratio (meaning it earns more than it pays out in losses and expenses). The company is cheap compared to other specialty insurance peers. Today is an excellent time to add this stock for the next five years ahead.
